Voluntary Administration Still An Effective Restructuring Process, But The Australian Securities And Investments Commission’s Data Shows Timing Is Everything

Australian Securities and Investments Commission Review Report 836

The Australian Securities and Investments Commission (ASIC) has recently released Report 836 “Review of Voluntary Administration and Deed of Company Arrangement Process 2021 – 2025.”

The report marks the first time that ASIC has provided a detailed public report on the voluntary administration (VA) and Deed of Company Arrangement (DOCA) regime and examines data in relation to 3,528 VA appointments — including group appointments — over the last five years.

Despite a decline in the prevalence of VA appointments in the last 20 years, the report demonstrates that the VA regime remains an important restructuring mechanism. The data also specifically shows that DOCAs continue to deliver positive outcomes, particularly for larger and more complex businesses — but also that delay can materially reduce the prospects of a successful restructure.